The Striking Price

Beyond the Call

Nikkei warrants lead new-product charge

BY EATING UP one covered-call fund after another, investors have demonstrated their appetite for packaged option ideas and their hunger for higher yields. Now, Wall Street is adding more exotic flavors to its recipe.

Next on the menu: warrants, trusts and notes that replicate common option strategies that Wall Street hopes to sell on Main Street. Last week, Lehman Brothers (ticker: LEH) sold to the public more than two million Lehman Brothers Nikkei 225 Index Call Warrants, which resemble two-year call options and allow...